Qatari bourse index gains 80 points

08/01/2015 06:57 AST

Qatari bourse snapped a six-session losing streak yesterday as sell-off by institutional investors eased. The benchmark index edged up 0.73 percent, or 86 points, to close at 11,898.

The index moved into positive territory followed by a 1.53 percent fall on Tuesday, which bore the brunt of a renewed fall in oil prices. The Qatar Exchange (QE) witnessed its longest losing streak in the recent months when it extended a six -day decline on Tuesday.

Real estate sector was the main supporter yesterday. The sector index jumped 2.25 percent, with the Barwa Real Estate gaining the most by 4.64 percent. Ezdan added 1.41 percent, while UDC edged 1.05 percent up.

Energy-sensitive stocks Gulf International Services and MPHC advanced. Gulf International surged 6.93 percent as MPHC added 1.24 percent.

The Board of Directors of Gulf International yesterday recommended a cash dividend of QR1.02bn, equivalent to QR5.5 per share to the shareholders for the financial year ended December 2014. The figure represents a 243.7 percent growth compared to the previous distribution amount of QR297.34m for the same period in the previous year.

The MPHC’s board of directors recommended a dividend of QR1.38bn, compared to an amount of QR440m distributed for the four-month period ended December 31, 2013.

Over 12 million shares worth a total value of QR514m exchanged hands yesterday. Of the total 41 traded companies, 28 advanced yesterday as 11 declined and two remained unchanged.

Most Gulf stock markets rebounded on Wednesday after suffering sharp losses earlier in the week because of the renewed slide in oil prices. Brent futures have fallen more than 10 percent this week to their lowest levels since the spring of 2009, and traded near $50 per barrel yesterday, Reuters reported.

However, some investors have decided that Gulf equities are oversold and have returned to the markets as buyers, temporarily at least.

Dubai’s bourse, which had suffered more than others because it is traditionally volatile and many investors are leveraged, closed 4.4 percent higher at 3,600 points in a broad recovery on strong trading volume.

Abu Dhabi’s index gained 2.6 percent, Qatar rose 0.7 percent and Kuwait edged up 0.4 percent. Saudi Arabia’s bourse, which closes later in the day than other markets in the region, was up 1.3 percent.

Shares in Kuwait’s Al Qurain Holding tumbled their daily 10 percent limit after the firm’s shareholders decided to delist it from the bourse, disappointed with the stock’s performance.

Kuwait’s market underperformed the region last year, partly because of investors’ frustration with the slow implementation of development projects.

In Oman, Index edged down 0.4 percent to 6,204 points, while Bahrain inched down 0.1 percent to 1,425 points.

The Peninsula